Sustainability related EU directives in 2024 and the building industry

[edit] EU directives, terms and the UK

Whilst the direct impact of new EC commission directives on the UK since Brexit varies, indirect impacts in terms of cross boarder trading and market development are most likely to continue in some way. In 2024 the introduction of a number of EU Directives is likely to continue to shape the prerequisites to and nature of trade, within but also with the European bloc and also within construction.

It EU Commission often uses the terms Environmental, Social and Corporate Governance (ESG) and Corporate sustainability and responsibility alongside CSR, encouraging a systemic approach to corporate social responsibility over a longer and sustained period. It defines CSR as 'the responsibility of enterprises for their impact on society and, it therefore, should be company led. these companies can become socially responsible by integrating social, environmental, ethical, consumer, and human rights concerns into their business strategy and operations.

In 2024 a number of major CSR related directives for larger corporations as well as their supply chains come into force, these will increase the reporting requirements placed of larger firms but importantly is likely to filter down to their supply chains. In many ways these are aspects of CSR principles that will become in effect mandatory for certain companies or at least will require reporting of performance over and above financial reporting.

[edit] Corporate Sustainability Reporting Directive

Corporate Sustainability Reporting Directive (CSRD) in January 2023, the Corporate Sustainability Reporting Directive(CSRD) entered into force and as of 2025, the EU will require large and listed companies to disclose information on risks and opportunities related to their Environmental, Social, and Governance (ESG) practices. A particular focus will be the impact of activities on people and the environment and it is likely to effect around 50,000 companies, as well as supply chains through reporting requirements.

[edit] Corporate Sustainability Due Diligence Directive

Corporate Sustainability Due Diligence Directive (CSDDD) is expected be passed in 2024 and thus made law. In will primarily impact EU-based companies with over 500 or more employees and over €150 million annual revenue, but will also impact international companies doing business in the EU and most likely their supply chains. Compliance will require;

• Integration of sustainability and human rights due diligence into procurement policies
• Identification of actual or potential adverse human rights and environmental impacts in supply chains
• Prevention, mitigation or end of negative impacts in supply chains based on a set criteria
• Establish and maintain workers' rights complaints procedure in a supply chain
• Design and implementation of a supply chain climate transition plan for the largest of companies.
• Monitor due diligence policies and measures, report on and publicise these also for suppliers.

[edit] Directive on Empowering Consumers for the Green Transition (ECGT)

Directive on Empowering Consumers for the Green Transition (ECGT) came into force in January 2024 and aims to curtail green-washing, climate neutral claims and unfair company tactics that prevent consumers from making sustainable choices. Products will only be able to be labelled as eco, green and so on when the entire product is certified by a trustworthy scheme such as the EU Ecolabel and deemed so.

[edit] MAC Directive and F-gas regulations

The new F-GAS Regulation to come in force on 1st January 2024 will gradually phase out the consumption of F-Gases in Europe by 2050 with sharp quota reductions already from 2024. This is significant because of the role F-gases (hydrofluoroolefins or HFOs) have and continue to play in the manufacture of heat pumps as they offer a combination of high performance and low global warming potential (GWP).

[edit] Related articles on Designing Buildings

• Construction Products Directive.
• Corporate Sustainability Due Diligence Directive.
• Directive.
• Energy Performance of Buildings Directive.
• Environmental liability directive.
• WEEE directive.